5. Define both "consumer surplus" and "producer surplus". How do both change with changes in price? What happens to both when quantity supplied equals quantity demanded at the equilibrium price?

6. Explain what it means for there to be "excess supply," "excess demand," of for both demand and supply to be in "equilibrium." If we start in a situation of either excess supply or excess demand, explain the process in which supply and demand end up in equilibrium.

7. Define, provide an example of, and explain the consequences of, each price control.

• Price Ceiling
• Price Floor

8. Explain what a "black market" is, how it emerges, and how it differs from legal markets.

9. Explain how the following phenomena affects the demand curve for lemonade. (Hint, you can use your best judgment to decide whether two goods are substitutes or complements)

• A large increase in the price of apple juice
• A large decrease in the price of lemons
• Drinking lemonade suddenly becoming a popular trend
• Good weather in China results in a bountiful harvest of tea.